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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: DMaA who wrote (191367)	10/12/2001 10:41:31 AM
From: TigerPaw	Read Replies (1) \| Respond to of 769670

Hayek pointed out that almost all information that matters is decentralized, that it exists in the minds of the millions of participants in an economy. Hayek first made this point in a 1935 article explaining why socialism couldn't work. David R. Henderson seems to either not understand the work of the Nobel Prize Laureates or chooses to misrepresent it. They studied the information that people can know, or that market participants think that can be known. It doesn't really matter if the seller of a used car knows it's driving history, all that matters is whether the buyer thinks the seller may know. That is enough to cause the buyer to demand a "risk premium" for the transaction. As the Laureates point out, regulation is one way to bring balance back into such transactions (for example driving history disclosure laws), but there are non-governmental ways too, such as guarentees. I think the Hoover guys are just worried that people will realize that there is sometimes a good and balanced reason for regulations. TP